Renters in many of the nation's most populous counties from New York to Florida to California face financial pressures with paying their rent.
Monthly rent for a typical three-bedroom property consumes 30% or more of an average renter’s income in about 78% of the country's largest counties, making them fit the federal Housing and Urban Development Department definition of cost burdened, according to housing data and analytics firm ATTOM's latest findings.
ATTOM analyzed 222 counties with a population of 100,000 or more that had sufficient rental data in January, and 174 were deemed cost burdened. And a report from Moody’s Analytics found the national average rent-to-income ratio had reached 30% for the first time since the firm started tracking the data more than 20 years ago.
The most cost-burdened markets were New York City; South Florida's Miami, Fort Lauderdale and Palm Beach; Los Angeles; Northern New Jersey; and Boston, according to Moody's.
Rents soared in late 2021 and carried over into the first half of last year. A heavy stream of units under construction, economic concerns and slower migration to Sun Belt states sent rent growth tumbling. Mortgage rates that more than doubled between November 2021 and October 2022, however, kept renters in apartments.
In ATTOM’s report, the least affordable regions include Kings County, which includes Brooklyn, New York, where 126% of average local wages are needed to pay rent. Indian River County, home to Vero Beach, Florida, is at 100% of average local wages needed; Charlotte County outside Fort Myers, Florida, was at 84%; Monterey County outside San Francisco is at 92%; and Riverside County outside Los Angeles is at 77%.
Jefferson County, Alabama, home to Birmingham, was the most affordable at 20% of average local wages needed for rent in January, according to ATTOM. It was followed by Pulaski County, home to Little Rock, Arkansas; Cuyahoga County, including Cleveland; Wayne County, home to Detroit; and Summit County that includes Akron, Ohio.